Bluecycle Reveals Dynamics Behind Online Auctions
Auctioning salvage a day longer than the norm can bring double the revenue, according to a report by Bluecycle.
This is just one of the findings from the company’s study of over 75,000 online auctions, which reveals the psychology behind maximising the value of salvage.
Although only 24% of Bluecycle’s auctions happen over a three-day period, results show that vehicles featured in those auctions receive twice the level of return than those vehicles auctioned over a two-day period.
Findings also reveal that the make of the vehicle, the amount of damage to a vehicle and whether keys are available, are all important to buyers and directly affect how much they are willing to bid.
Bluecycle also found that most bids are placed between 8am and 11am, with even greater weighting between 9am and 10am. Wednesdays appear to be the most popular day for auction activity, with the highest average number of bids per day.
The type of fuel a vehicle uses also has an impact on auction activity with diesel powered vehicles achieving higher returns than LPG or petrol powered vehicles.
Another finding recommends extending auctions past their official closing time if there is a bid in the last minute. This period, known as ‘auto-extension’, extends until there is a one-minute segment in which no bids are placed and helps to increase returns on vehicles. An example of this was seen in the recent auction of a Nissan 350Z. The official close time was 10.18am by which time the car had reached £8,200. Auto-extension came into play and the vehicle finally closed at 10:30 at £9,570 – a 17% increase in returns.
Piers Wilson, head of market development for Bluecycle, said: “The purpose of the research was to better understand the dynamics of our auctions and gain even further insight in to the way our buyers and sellers trade.
“Quite simply, the cost of storing a vehicle over a certain period of time is much higher than sending a vehicle straight to auction. Considering key variables that influence activity, such as extending auctions for longer periods, can help sellers not just to dispose of a vehicle but achieve highest possible returns.
“The auction dynamics study has been such a success that we will look to test and review concise recommendations for sellers and commission further analysis on a quarterly basis, helping us achieve our aim to provide the best possible experience for our customers.”
See also:
